O'Malley, Busch Not Worried About House Of Cards Threat

O'Malley, Busch Not Worried About House Of Cards Threat

House Speaker Mike Busch reacts to the letter he received from the producers of "House of Cards." Download This File

House Minority Leader Nic Kipke talks about the "House of Cards" letter. Download This File

Baltimore County Democratic State Senator Jim Brochin reacts to the "House of Cards" letter. Download This File

Netflix political drama series "House of Cards" is demanding millions of dollars more in tax credits from Maryland, or it will go elsewhere.

The Washington Post reportsthat California-based production company Media Rights Capital has pushed back its filming schedule for its third season to see if lawmakers boost credits for film and television projects enough.

Last year, lawmakers boosted the $7.5 million annual allocation to $25 million, but they're divided on whether to do that again.

"This just keeps getting bigger and bigger" Del. Eric Luedtke (D-Montgomery) said at a hearing on the issue last week. He has supported film tax credits in the past. "And my question is: When does it stop?"

The first two seasons of the show focused on a politician who threatens and kills in the pursuit of power were filmed in Maryland, mostly in the Baltimore City and Harford County.

According to the Maryland Department of Business and Economic Development, the production has had a $250-million impact on the state's economy over the last two seasons.

In the first season, the department says the production company hired 2,198 people as actors, crew and extras. For the second season, that number increased to 3,738 jobs.

Maryland reimbursed Media Rights Capital more than $11 million in tax credits after the first season and that amount could reach $15 million for the second season. Economic development officials hoped to promise another $15 million for the third season.

In a letter to Gov. Martin O'Malley, Media Rights Capital Senior Vice President Charlie Goldstein doesn't say how much the show is seeking, but he notes filming has been delayed to ensure that enough of an increase is approved.

"In the meantime I wanted you to be aware that we are required to look at other states in which to film on the off chance that the legislation does not pass, or does not cover the amount of tax credits for which we would qualify," the letter says. "I am sure you can understand that we would not be responsible financiers and a successful production company if we did not have viable options available."

Two bills that aim to increase the ceiling to $11 million or $18.5 million are in committee and House leaders say some increase is likely. But it's not clear if the increase will be enough for Maryland to keep the show.

Maryland's tax credits are in the middle of the range that states offer, but they are behind a handful of states that do not cap their credits, state officials said. The District does not offer tax credits and Virginia lawmakers are considering a tax credit cap increase to $12.5 million a year.

Aides to Governor Martin O'Malley say the governor hopes the matter is resolved.

"The film tax credit is an important program," the governor's spokeswoman Nina Smith said in an email to WBAL News.

"There are other economic development priorities as well, including cyber, biotech, space and aerospace, advanced manufacturing, etc. We're trying to invest limited resources in the best, most efficient way possible to create jobs and grow our economy. We remain hopeful that we can reach a positive resolution."

The letter was also sent to House Speaker Michael Busch and Senate President Mike Miller.

Miller was not in Annapolis today. He was attending the funeral of former Senator Mike Wagner who died last week.

Busch told WBAL News that he didn't view the letter from the production company as a threat to leave Maryland.

He says the legislature will consider the production company's request.

"We will take that into consideration like we do every other issue when we go out and do our budget," Busch told WBAL News.

"We're very proud to have that entertainment venue here. I think it's got a lot of recognition, but they're like every other issue and we have got to balance our budget."

Some scenes from the current season of the series were shot in at the Maryland State House in Annapolis last June. The House of Delegates chamber was used as the U.S. Senate chamber in the series.

Busch's wife appeared as an extra in the episode as a senator, and Busch said series star Kevin Spacey used his office in between scenes.

"I didn't have to call my wife Senator, after she appeared on the series," Busch joked.

A number of other lawmakers who spoke with WBAL News today were critical of the letter from the production company.

House Minority Leader Nic Kipke, who said he is a fan of the series, called the letter, "tacky."

"We have lots of discussion around the state, but I think the letter was a little strong handed. We proud to have House of Cards here, but we have to make sure it pays for the taxpayer," Kipke added.

Baltimore County Democratic State Senator Jim Brochin described the aid to the film company as, "corporate welfare."

"We gave a big tax break to Black & Decker, and they bolted, so I'm not a big fan of corporate welfare," Brochin told WBAL News.